Investment in injection molding equipment grew by 20%

MOSCOW (MRC) -- Over the ten months the Russian converters invested about $83 mln in injection molding equipment which is 20% more than investments over whole 2009, according to MRC Annual reports.


In the structure of investments over the mentioned period about a quarter of all capital ($19 mln) was spent for increase in powers of molded packaging sector. Leaders among converters investing in molded packaging sector are iPlast (Nizhnekamsk) and Europlast (Solnechnogorsk).


Decreased investment activity in 2010 in comparison to last year is marked in the following processing sector: electrical goods (24%), household goods (10%).


The most considerable decrease in investment is marked in the sector of car components production where in 2010 almost $4 mln was spent for equipment which is 2,5 as little as in in 2009.


According to MRC analysts estimates, by the end of 2010 investment in injection molding equipment may exceed $85 mln, mostly at the expense of packaging sector development.


More detailed analysis of polymers processing and consumption volumes by sectors, markets and types of finished products for each converter is presented in the Annual reports by MRC.


MRC

Reduction in PP prices has lowered

MOSCOW (MRC) -- Weakening of import polypropylene (PP) pressure suspended the reduction in polymers prices in the Russian market, according to MRC analysts.


Succession of summer shutdowns for scheduled maintenance of some Russian PP producers stipulated a considerable growth of imports volumes. Insufficient offer of the Russian raffia was compensated by the supplies from external markets. At the end of September the volumes of homo-polymer propylene imports grew up to record 15.9 KT, at that about 11.6 KT are PP supplies from Turkmenistan and Ukraine.


In October because of technological problems the volumes of PP production at Ufaorgsintez and Stavrolen (Lukoil Group) reduced. Also the imports supplies dropped. As a result, despite seasonal fall in demand, there was no surplus offer in the Russian market.


In November demand for PP kept on falling, many market players limited the purchases of polymers up to current needs. The Russian producers faced serious pressure of cheaper import PP, in particular, from Turkmenistan. By mid-month the prices for the Russian raffia were lowered on average by 1.500 RUB./t and were fixed within the range 57.500 - 59.000 RUB./t, including VAT, FCA.


By early December the pressure of import supplies from Turkmenistan weakened. Imports supplies from Turkmenistan were considerably reduced. Because of almost 2-week suspension of Linik, the terms of PP delivery from Ukraine were shifted. All these factors had an impact on the prices: November level of prices remained in December as well.


At the same time raffia consumers go on limiting the purchases volumes trying to reach a further decline in prices. On the contrary, there is a non-considerable deficit in the market of molded PP, connected with long absence of material supplies from some producers. The price offer for molded PP-homo is within a wide range: 59.500 - 62.000 RUB./t., including VAT, FCA.


MRC

Saudi Aramco chief urged the region's petrochemicals producers to add value

(Arabian Oil and Gas) -- Khalid Al-Falih, president and CEO of Saudi Aramco, today called for GCC chemicals producers to double the business-as-usual estimate of US$80 billion per year for the next decade to $150 billion to $200 billion a year. ⌠By 2020, the region's petrochemical and chemical enterprises should increase their sales by a factor of five, Al-Falih said.


In his speech, Al-Falih also noted that refinery-petrochemical integration has only started to emerge in the region, which has been built largely on the competitive advantage derived from gas-based feedstocks.


Comparing the Gulf's petrochemical sector to those in other parts of the world, Al-Falih said the Gulf region's enterprises need to focus on product diversity and downstream value addition. This should go to the extent of supporting industries such as automotives, construction, electronics, textiles, pharmaceuticals, agriculture and others that could benefit from further diversification.


As well as helping to diversify economies and boosting GDP growth, product value addition creates employment opportunities, he said.


Al-Falih called on the Gulf's petrochemical industry to invest more in R&D and innovation, human resource development and to nurture and cultivate a dynamic environment that would bring about commercial success and promote entrepreneurship.


⌠The next 10 years will be a golden age for our region in terms of economic conditions and commercial opportunities, but we also face many structural hurdles and challenges. We must therefore seize this moment before it passes, Al-Falih said.


MRC

Command and control for Rompetrol polymer plant

(PRW) -- Rompetrol Petrochemicals, a subsidiary of the Romanian oil producer Rompetrol Group, has completed a major project to integrate its polymer operations into an automated command and control centre.


The new centre integrates the firm's three polymer production plants making polypropylene, low density and high density polyethylene, as well as those related to pyrolysis - the steam boilers and the propane-propylene separation station, it stated.


An investment of $0.5m went into the project which follows other major spending by Rompetrol totalling $44.5m in 2006 - 2007 involving restarting and modernising the firm's LDPE and HDPE units.


Rompetrol's oil refining operations were already integrated by central control through a $33m investment scheme completed in 2004.


MRC

MEG to remain strong in 2011 on China demand

(ICIS) -- Global monoethylene glycol (MEG) markets are likely to remain robust in 2011, supported by strong demand from China and a lack of new capacity additions, a top executive from MEGlobal said late on Tuesday.


This year has been a surprise for producers of MEG, a commonly used intermediate in the production of polyester fibres that go into clothes, as a widely expected industry downturn did not materialise. Prices and margins recovered throughout the year, supported by the strength in the polyester industry - especially in China.


Global MEG demand was expected to rise by around 10% to 21m tonnes by the end of this year, driven mainly by Chinese demand, which was expected to hit 9m tonnes, up from around 7m tonnes last year.


Besides demand, supply-side factors also helped producers in 2010 as operating problems constrained availability.


MRC